Hunter Sailing Company Exchanged an Old Sailboat for a New

question 95

Multiple Choice

Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of $160,000 and accumulated depreciation of $100,000. The new sailboat had an invoice price of
$270,000. Hunter received a trade in allowance of $70,000 on the old sailboat, which meant the company paid $200,000 in addition to the old sailboat to acquire the new sailboat. If this transaction has commercial substance, what amount of gain or loss should be recorded on this exchange?

• A)$10,000 gain.
• B)$0 gain or loss.
• C)$60,000 loss.
• D)$10,000 loss.
• E)$70,000 loss.

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Definitions:

Group Norms

Established standards of behavior shared by members of a group, which guide individual actions and decision-making.

Social Loafing

Occurs when people work less hard in groups than they would individually.

Role Overload

A situation where an individual is expected to fulfill too many roles or tasks, causing stress and potential burnout.

Disruptive Behaviors

Actions that significantly interrupt the normal flow of activities, operations, or processes, often leading to negative consequences.